Tourism and Hospitality
Marketing
TOUR 2006
Grace Lee
Lecture Nine Promotion
Overview
• Advertising• Sales promotion• Personal selling• Sales management
Introduction It is important to adopt an integrated approach to tourism promotion.
Advertising, public relations, sales promotion and personal selling should be used in combination to optimise outcomes and to make the most effective use of a promotion budget.
Advertising• An advertiser controls the way a message is
communicated to target markets:– When it appears– Where it appears
Scheduling must take into account of when consumers make their purchase decision.
Advertising
Advertising decisions should be informed by knowledge of the media habits of the target market.
Advertisements are placed in print and broadcast media and should:
- attract attention
- create interest
- foster desire
- inspire action
Advertising
• The choice of medium will be affected by:– Costs (of production and purchasing space or air
time)– Lead time– Reach, frequency and permanence– Waste
• Virgin Blue - The advertising mix
Advertising in Newspapers• Newspapers offer good frequency and short
lead times• Many newspapers serve local markets so
assist geographical segmentation• Their tangibility makes it possible to cut out
coupons and information that it is useful to retain.
Advertising in Magazines
• Magazines offer high reproduction quality but have longer lead times than newspapers.
• Detailed readership profiles assist target marketing and help reduce waste.
Advertising on Radio
• Radio is suitable for small businesses that wish to reach local markets
• It is affordable and ads can be produced at short notice.
• Messages can be reinforced through frequent exposure
• Schedules can reflect temporal changes in audience profiles
Advertising on Television• Television is a powerful medium that can
create emotional reactions.• Television can deliver national exposure.• It is expensive to produce television
commercials and to buy air time.
Advertising
• http://www.youtube.com/watch?v=-ibYnYoJ1jA&feature=related
• http://www.youtube.com/watch?v=35ZCgugxVso
• http://www.youtube.com/watch?v=r4eUd3y-DZI&feature=related
Outdoor Advertising
• Reach and frequency is determined by location.
• It is difficult to present complex messages.• Outdoor advertising can be used to support
other promotional activities.
Interactive Media• Advertisers can quickly respond to changing
conditions.• Consumers can control the information
acquisition process by downloading what they want at times that suit them.
• A web page has become essential for all tourism businesses, offering promotional messages 24 hours a day.
Advertising Agencies
Advertising agencies offer:• Creativity• Production skills• Media expertise
Establishing a good working relationship is essential. It should involve clear communication between client and agency and be based on mutual respect.
Advertising Evaluation
• Re-testing helps determine whether an advertisement is likely to convey the desired information.
• Before and after surveys should be used to measure the overall impact of an advertising campaign to determine if it has changed levels of awareness, interest, attitudes and preferences.
Brochures
• Brochures are produced by all sectors of the tourism industry.
• They can play an important role at each stage of the tourism process:– offering tangible evidence of the
experience, prior to purchase– providing reference information during
the consumption phase– serving as a tangible reminder of the
tourism experience
Sales Promotion
• Sales promotion is used to generate short-term increases in demand.
• Incentives for staff include bonuses.
• Incentives for consumers include price reductions.
Merchandising
• Merchandising involves the provision of products that carry an organisation’s name or logo.
• They can be given or sold to intermediaries, consumers and the public to serve as an enduring, tangible link with the supplier.
Exhibitions
• Tourism organisations purchase space to display products and facilitate negotiations with prospective buyers.
• The design of tourism exhibitions and the programming of entertainment often produces a festive environment.
Personal Selling
• Personal selling involves person-to-person communication between a sales person and a prospective customer.
• The salesperson can make an offer that responds to needs identified during the conversation.
Personal Selling
• The personal selling process involves:– Prospecting– Pre-approach– Approach– Presentation– Negotiation– Closing the sale– Follow-up
Sales Management
A company’s sales effort requires:– Planning– Organising– Controlling– EvaluatingSales teams may be organised based on:– Geographical territory– Products– Markets
Tourism Promotion
• Participation in cooperative promotion campaigns offers considerable benefits for tourism organisations. All sectors of tourism gain if destination demand is increased through collaborative efforts.
• Promotion budgets can be reduced if satisfied tourists become advocates for a destination when they return home.
Your TermPlease form your groups and prepare a
skeleton Christmas promotion plan for the followings:
• A five star hotel in Hong Kong• A small hotel in France (Southern part)• A resort hotel in Hainan Island
Required Readings
• Hsu et al. (2008) chapter 9• E-readings 24, 25, 26